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HomeMy WebLinkAboutA053 - Council Action Form dated November 23, 2004 Item # 17 Date: November 23,2004 COUNCIL ACTION FORM SUBJECT: ESTABLISHING ASSESSMENT AMOUNT FOR DAYTON AVENUE IMPROVEMENTS ASSOCIATED WITH EASTGATE SUBDIVISION BACKGROUND: The Eastgate Subdivision Covenant for Assessment and Costs of Improvements for Dayton Avenue was made effective between City Council and the Developer on February 13, 2001. A copy of the covenant is attached. In this Covenant, the Developer and the City agreed to develop an assessment program to finance an additional lane of travel on Dayton Avenue between the north boundary of Eastgate Subdivision and the intersection of East 13t" Street and Dayton Avenue. The construction project will be by means of City awarded contract to be paid through special assessments to be levied against the lots of Eastgate subdivision. The Covenant allowed for the lots within Eastgate Subdivision to procure a release from the assessment by paying off the established share for that parcel. To date, six of the twenty-three parcels have paid off the assessment costs. The Covenant established the total assessment amount at $141,000, to be effective, through May 1, 2001. Certain lots have been sold and developed, with the assessment obligations paid, based on this amount. This cost estimate has been updated in the amount of $210,000 to reflect current construction prices and engineering fees. The assessment costs for the remaining lots will be calculated according to this revised estimate. ALTERNATIVES: 1. Establish total estimated costs of $210,000 as the basis for assessment of Dayton Avenue Improvements, as detailed in the Eastgate Subdivision Covenant for Assessment and Costs of Improvements for Dayton Avenue. 2. Authorize continued use of the $141,000, as shown in the original Covenant, for the basis of assessment even though actual costs of construction are higher. MANAGER'S RECOMMENDED ACTION: It is the recommendation of the City Manager that the City Council adopt alternative number one thereby establishing total estimated costs of $210,000 as the basis for assessment of Dayton Avenue Improvements, as detailed in the Eastgate Subdivision Covenant for Assessment and Costs of Improvements for Dayton Avenue. COUNCIL ACTION: S:\CAF\Nov 23\Eastgate Dayton assessment.doc